Don’t wait to begin your home loan modification program.   If you do not qualify for a refinance and you don’t want to sell your home with a short sale or loose it to foreclosure or give it back to the lender with a deed in lieu of foreclosure than you should consider a loan modification with your current lender.   Don’t wait!

You do not want too much time to go by and get behind on payments and end up with a foreclosure.  You do not want to see a form called:  “Notice to Vacate”.  Prepare for this way in advance.   Suppose you are having a hard time making your house payments right now but you are managing.  Consider the loan modification program right now. Get ahold of your lender and begin the discussion and even start the process.

Consider what will happen if you wait too long “hoping” things will get better.  That you will find a new job or the real estate market will quit slumping and there will be a turnaround and you won’t have to sell or loose your home to foreclosure.  What if those things don’t happen before it’s too late.  Better to prepare now.

If a “Notice to Vacate”  arrives at your doorstep – where will your family and children move to?   Have you found a rental agency or landlord that will rent if your fico score gets hammered during the notice of default period?   Is your income sufficient to qualify for a rental?

Don’t Wait.  Prepare Now.  Get started on your loan modification program today.

The Mother of All Refinance Booms is on it’s way… maybe.

We should know very soon if we will be seeing rates of 4.5% for a 30 year fixed rate loan.  If that happens it will help hundreds of thousands of homeowners struggling to make their payments if they are able to refinance into a much lower interest rate loan.

This news should be good for everyone who will qualify based on credit, loan to value and income guidelines.  Just think of how many thousands and thousands of adjustable rate mortgages are about to reset and the benefit this would be to those homeowners.

This of how many people will jump off the fence and lock in their chance to purchase a home whereas they could not previously afford one.  Or, how about those folks who need to refinance to pull cash out.

Financial lobbyists are requesting the Treasury Department to lower the interest rate to 4.5% and purchase mortgage backed securities from freddie mac and fannie mae.  This would be an unprecedented move and would spur a refinance boom across this country with a potentially tremendous impact on the housing industry.

The idea behind this is freeing up cash from homeowners who would have lower mortgage payments and more money left over to put back into the economy as well as impacting the housing market as new and used homes begin selling again.   By getting the housing market turned around it should have an overall positive impact on the economy as jobs would be created due to money pouring back into the cash registers.

Is this a long term solution?  Will this completely fix our economy?  No one really knows. The lending industry will not so quickly fall back into the past habits of sub-prime and easy credit so I don’t think we can look for what happened between 1998 and 2006 that led to the current housing bubble.